STRONG OPERATING RESULTS FROM HIGH-QUALITY RETAIL ASSETS
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Growth of 2.1% in group like-for-like net rental income demonstrating continued tenant demand for our properties and the success of asset management initiatives. |
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Occupancy of 97.7% reflecting high-quality retail assets. Occupancy exceeds our target of 97% and is up since the half year. |
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Leases signed overall at 4% above ERV, and 10% above previous passing rent, providing confidence in future income growth. |
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PORTFOLIO REPOSITIONED TO DELIVER SUPERIOR FUTURE RETURNS |
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Portfolio repositioned to pure retail focus. Announced office asset disposals for £627 million at a 7% premium, and £541 million investments into successful retail venues: Value Retail; Victoria Quarter; Whitgift; and The Junction Fund. |
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Significant development progress. Land purchase and commitment to proceed at Le Jeu de Paume, Beauvais; JV signed with Westfield to develop Centrale and Whitgift in Croydon; Les Terrasses du Port, Marseille now 83% let; and John Lewis signed to anchor Eastgate Quarters, Leeds. |
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FOCUSED FINANCIAL MANAGEMENT REDUCING COSTS
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Reduction in net operating expenses of 7%, and finance costs down 11% year-on-year. |
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Active liability management. Seven-year €500m 2.75% bond issued, and new £175 million revolving credit facility agreed in December. Year-end liquidity of nearly £700 million and gearing of 53% provide flexibility for further investment. |
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INCREASED DIVIDEND REFLECTING FUTURE CONFIDENCE
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Final dividend increased by 7.5%. Total dividend for the year of 17.7 pence per share (2011: 16.6 pence). |
